Merrimack Industries sells its output in a perfectly competitive market. Which of the following statements is true about Merrimack? a. Merrimack faces a downward sloping demand curve. b. Merrimack will earn zero economic profits in long-run equilibrium. c. Merrimack would increase its total economic profits by charging a price slightly lower than the market price. d. The marginal revenue Merrimack receives from selling an additional unit of output will be different from the price at which it sells that unit.

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan